Monthly Archives: March 2019

The rate of attrition of a credit surrender

What is the wear rate?

loan rate

There are seven banks specializing in the redemption of credit and sharing this market in which the demand is high.
It is common for an applicant to obtain an agreement from a bank while all others have refused the request.
The more qualitative a request is, the higher the number of banks accepting the demand.
However, although different loan buyback banks work in the same way overall, they are free to determine the interest rate for each request.
In order to protect borrowers with too high interest rates, the Banque de France has defined maximum interest rates for each loan transaction: this is the rate of attrition.

Thus the banks of repurchase of credit must not exceed this rate of the wear under penalty of legal proceedings.
An organization lending money at a higher interest rate than the rate of attrition is called a usurer.
In the event that a bank lends money at an interest rate higher than the usury loan and the borrower has started to repay, the bank will have to repay the borrower the amount overpaid.

The calculation of the wear rate

The calculation of the wear rate

Every quarter, the Banque de France updates the usury rate for each type of loan: credit redemption, real estate loan and consumer loan.
For the determination of the rate of wear, the Banque de France relies on the interest rates charged by several banking organizations.

Taking into account the total amount lent by banks, the Banque de France averages the interest rates applied.
The result obtained is then increased by approximately 33% and makes it possible to obtain the attrition rate of a credit redemption and other types of loans.
It is important to stress that the Banque de France reserves the right to determine the rate of wear arbitrarily.

The current rate of wear of a credit surrender

In the second quarter of 2018, the usury rate of a loan buyback defined by the Banque de France is 5.89%.
Thus, when applying for a buy back of credit, it is important to check that the TEG (total effective rate) is well below the rate of wear.

It is also advisable to ask the broker for repurchase credit the rate of attrition at the time of receipt of a loan consolidation offer.
Although it is important to know the attrition rate when applying for a repurchase of credit, all banks comply with the maximum rates defined by the Banque de France.


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Borrowing money seems so simple. The requirements are also not really high to be able to borrow money. After all, virtually everyone with a fixed income can borrow money. However, it may happen that you can not obtain a loan, even if you have a fixed income, you fall within the right age category, and you do not have a negative loan history. If you have a low fixed income, it is often not possible to borrow a lot of money. Yet it is not impossible to borrow money with a low income.

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If you have a low income, it is not always possible to borrow a lot of money from a bank or financial institution. Most lenders have strict requirements when it comes to providing a loan. They want certainty and determine on the basis of income how high the loan can be and whether you can eventually pay off this loan in its entirety in time. With a low income, it is certainly possible to borrow money. In most cases, however, you can borrow less money. You may also be confronted with high-interest costs.

With a low income, you can often take out a smaller loan. You can, therefore, borrow less money than someone with a high income. Not only the level of income plays a role in determining the amount of a loan. You also need to have a fixed income and it is checked whether you have multiple loans in your name. Banks and financial institutions only lend money when they have certainty that the borrowed money will eventually be repaid. This is often still to be seen for people with a low income. After paying the fixed costs, there is often not much left, so the monthly repayments may be compromised.

There aren’t any plenty of opportunities to take out a loan for bad credit. This way you can go to my company for an online payday loan for bad credit. These loans often have a short term. If you really want to apply for a large loan, it is also possible to request a loan with collateral. The loan then has a reasonable interest rate, but collateral must be provided. This can be in the form of valuable goods, such as vehicles, homes, and valuables. In this way, you can still apply for a larger loan than you originally thought.